Hi Everyone, I need help with the construction of a variable, 4firm_ratio. 4firm_ratio is calculated as the market share of largest four firms within each industry. For example., in an industry if there are 10 firms, I need to select the largest four firms. Let's say the largest four firms are ABC, MNO, STU, and XYZ. I need to calculate the market share for each of these firms. Market share of firm ABC is calculated as square of SALE of ABC divide by total industry SALES. After calculating the market share of the largest four firms in an industry, I need to add the market share of ABC, MNO, STU, and XYZ. The addition will be called as 4firm_ratio.
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